Suzlon Energy share price target cut by Nuvama, UBS after Q1 results but Co sees a stronger H2

Brokerages such as UBS and Nuvama have cut their price targets on wind energy solutions provider Suzlon Energy Ltd., even as the management is guiding for the second half of the year to be stronger in comparison to the first half. The stock had declined 10% on Tuesday following its first quarter results.

During the earnings call on Tuesday, Suzlon Energy flagged that 10% to 20% of deliveries that were delayed due to the geopolitical disruptions in West Asia, is likely to recover in the coming quarters.

The management has also guided for the second half to be stronger with an H1 / H2 split of 35% to 40% / 60% to 65% respectively.

Suzlon Energy's margins narrowed during the June quarter, which the management also attributed to one-time investment costs, and a shifting mix to EPC, along with lower operating leverage.

The company has now projected its EBITDA margins to be between 17% to 18% for this year, compared to 18% in financial year 2026. Capex estimates for the year will be ₹700 crore, which does not include the ₹500 crore investment towards DevCo.

Brokerage firm Nuvama maintained its "hold" rating with a price target of ₹51 from ₹56 earlier.

It has cut its Earnings per Share (EPS) estimates for financial year 2027 and 2028 by 13% and 10% respectively as they have tweaked their margin projections and also accounted for higher depreciation and interest costs.

UBS has maintained its "buy" rating on Suzlon but has cut its price target to ₹66 from ₹72 earlier.

JM Financial has maintained its "buy" recommendation on the stock with a price target of ₹62.

For the June quarter, Suzlon Energy reported 22% revenue growth from last year to ₹3,828 crore, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) remained flat from the year-ago period. Net profit also fell 6% year-on-year.

12 analysts have coverage on Suzlon Energy, of which 10 of them have a "buy" rating, and the other two have a "hold" rating.

Shares of Suzlon Energy were among the worst Nifty 500 performers on Wednesday. The stock had ended 9.7% lower on Wednesday at ₹47.98, nearly 50% below its recent peak above ₹84 per share.